Perrigo Pharmaceuticals Company
Standard Returns Policy


The following terms and conditions (“Terms”) are applicable only to returns of Perrigo’s Pharmaceutical Products (“Products”) to Perrigo Pharmaceuticals Company (“Perrigo”) by Purchasers (“Purchaser”) and are the only conditions applying to the return of Products, unless conveyed and consented to in writing by duly authorized personnel of Perrigo.  This shall serve as the returns agreement effective April 6, 2006 (“Policy”):

Perrigo will generally accept returned Products in their original packaging with less than six (6) months of expiration dating pursuant to the Terms described below:


Direct Purchase Agreements
1. If the purchaser has executed a purchase agreement with Perrigo to purchase Perrigo products directly from Perrigo, Perrigo will accept returned Products from Purchaser whether the Products were purchased directly from Perrigo or Products were purchased through a wholesaler or distributor (“Wholesaler”). 
2. A credit memorandum will be issued directly to the Purchaser, who returned eligible Products, which may only be exchanged for replacement Products or new Products.  The only exception to this rule will be for Purchasers who make no purchases directly from Perrigo (making all purchases through a Wholesaler), in which case a check will be issued to Purchaser.
3. Product value will be based upon the lower of Wholesale Acquisition Cost (“WAC”) or the existing net contract price at the time the credit memorandum or check is issued (“Reimbursement Price”). If no contract price is in effect and WAC is not applicable, the product value will be the lowest price for the product as determined by Perrigo at the time the credit memorandum or check is issued (“Lowest Price”).
4. Credit memorandums cannot be issued to the Wholesaler who sold the Products unless the Products were returned directly by the Wholesaler.

No Direct Purchase Agreement
1. Purchasers, who have not executed a purchase agreement with Perrigo, to purchase Perrigo products directly from Perrigo, should return the product under the instructions and polices of the Wholesaler from whom they purchased the product.
2.  In the event that the purchaser, who returned eligible Products, requests that credit be issued directly to the Wholesaler, the product value will be the lowest price for the product as determined by Perrigo at the time the credit memorandum is issued (“Lowest Price”).
3. Purchaser will obtain reimbursement directly from the Wholesaler.


GENERAL POLICY

1. Credit will be issued for Products returned up to twelve (12) months beyond the expiration date of the Products, with the exception of those items described below or those Products which otherwise fail to satisfy conditions set forth in this Policy.
2. Credit will be issued for partials based on an actual count of returned units as a percentage of the Reimbursement Price or the Lowest Price.
3.  Purchaser retains title to all returned Products until Perrigo issues a corresponding credit memorandum.
4. Any right of Purchaser to reduce payments to Perrigo for returned Products may only be exercised following receipt by Purchaser of a properly issued credit memorandum.
5.  If unable to determine an actual count of returned units, credit will be issued for partials as follows:


 

 Percentage of
Package Returned 

 Credit Percentage of
Reimbursement Price


75% - 99%

 75%

 50% - 74% 

 50%

 25% - 49%

  
 25%

 Less than 25%

  0%


 

NON-RETURNABLE ITEMS
The following Products are non-returnable, and Perrigo will not issue credit for the following:
1. Products with more than six (6) months of expiration dating remaining.
2. Products more than twelve (12) months past their expiration date.
3. Products expressly sold on a “non-returnable” basis.
4. Products returned in other than the original packaging.
5. Products sold or distributed illegally.
6. Products involved in bankruptcy sales.
7. Special customer specification Products.
8. Products damaged by fire, smoke, heat, water or other peril.
9. Products damaged by improper handling, storage, or shipping by Purchaser.
10. Products handled or stored contrary to Perrigo’s instructions.
11. Products whose packaging has been marked or disfigured in any way.
12. Products that have been marked or disfigured in any way.


SHIPPING ERRORS AND DAMAGED PRODUCTS
Products shipped in error by Perrigo are subject to 100% replacement credit provided Perrigo’s Accounts Receivable Department is notified within seven (7) days of receipt of the shipment, and Products are returned in original condition with a certificate of temperature storage within fourteen (14) days of receipt.  Replacement credit will include all reasonable and customary return shipping charges when authorized by Perrigo’s Accounts Receivable Department.  Product shortages or damaged items must be reported within seventy-two (72) hours of receipt for credit to be issued. 


MISCELLANEOUS
1. Perrigo reserves the right of inspection by a local representative prior to shipment of returns for any reason.
2. Perrigo retains the right of final decision concerning the determined value of returned Products and whether or not Products may or may not be returned for credit.
3. Perrigo will accept inventory from third party destruction/return companies.
4. To be eligible for returned goods credit, Products must not be destroyed by the third party without prior approval from Perrigo.
5. Perrigo reserves the right to destroy, as having no value, any Products returned without proper authorization and to deny credit for same.
6. Perrigo’s Quality department must approve all controlled substances returns. Without prior approval these returns cannot be accepted. Credit will be issued in compliance with this Policy and with established U.S. Drug Enforcement Administration (“DEA”) guidelines.
7. Perrigo reserves the right to audit Purchaser’s compliance with this Policy before issuing or authorizing credits or returns.


RETURNED GOODS PROCEDURE
No material will be accepted without a Return Authorization Number. To obtain a Return Authorization Number, email your request to rxreturn@perrigo.com along with the following information in an Excel Spreadsheet:

Debit Memo Number
Product Description
NDC Number
Lot Number
Expiration Date
Quantity
Reason for Return
DEA Number, if applicable

The Return Authorization number must appear on any debit memo requesting credit and must be clearly indicated on the outside of any cartons containing Product which is being returned. Without a Return Authorization Number, returned Product will be destroyed but will not be eligible for credit.

Approved Products should be sent along with the above information to:
CAPITAL RETURNS INC.
6101 North 64th St.
Milwaukee, WI  53218

PRODUCT RECALL
In the event of a confirmed Product failure caused by Perrigo, a recall initiated by Perrigo or a recall ordered by a government agency not attributable to Purchaser, Perrigo agrees to pay reasonable out-of-pocket costs pursuant to the HDMA guidelines for costs incurred by Purchaser in performing recall services requested by Perrigo.